An in-depth look at how one advisor compared the guaranteed path of a wirehouse sunset deal with the open-market potential of building – and selling – his own firm.
Three years ago, Diamond Consultants worked with a highly successful Merrill team generating $5mm in annual revenue. Let’s call the team lead John to preserve anonymity and confidentiality.
John wasn’t unhappy. He’d been a “lifer” at the firm, his business was thriving, his clients were loyal, and Merrill’s platform gave him access to all the tools he thought he needed. But John had reached a point that many top producers eventually face: he had outgrown the model.
At Merrill or any other captive platform, control over technology, branding, and the client experience resided with the firm. That lack of autonomy limited his ability to differentiate himself in a competitive market. And while Merrill’s retiring advisor deal, Client Transition Program or CTP,[*] offered a substantial retirement payout and the ability to keep his deferred compensation, it came with a familiar trade-off: a five-year post-retirement lockup for John’s team, a prescribed path for how he could retire, and a formula that capped the value of his life’s work without a competitive bidding process.
John wasn’t sure whether any transition, especially independence, would be worth the perceived risks. But he wanted to know if the numbers – and the long-term upside – would justify the move.
Evaluating the Options
When John approached us, he wasn’t even sure he would ultimately leave Merrill and was even less certain that independence was the right decision at this stage of his career. Ultimately, he needed to be convinced through education and due diligence whether a move would truly yield greater freedom and a higher return on his life’s work.
We began with a top-down analysis of his business, client needs, and goals. His client base consisted primarily of high net worth families with complex needs—clients who valued deep relationships, sophisticated planning, and high-touch service. He also wanted to expand through acquisition and attract next-generation talent who could carry the business forward. Those aspirations clashed with the limitations of a wirehouse environment.
Through this analysis, it became clear that independence, which offered the right amount of autonomy, a more lucrative long-term exit strategy, and the ability to customize the client experience more than any other type of model, would meet just about all of John’s needs. By establishing his own firm, John could build a brand that resonated with his clients and his local market, implement cutting-edge technology, and ultimately control the entire client experience.
We worked with him to assess operational needs and risk tolerance, ultimately identifying a supportive independence model that checked every box—a path that would allow him to build enterprise value while maintaining the right level of infrastructure and compliance oversight.
But John still had a difficult reality to reconcile. While his business and goals were better suited for independence, he recognized that a retire-in-place deal was far less risky and a fraction of the work. It wasn’t until he understood more about the process and the economics that was truly sold.
The Transition Process
Launching an independent firm required careful planning and execution—and that’s where Diamond Consultants guided John through every step. The process we follow with each advisor is methodical, data-driven, and tailored to the individual’s goals and risk tolerance.
- Choosing the Platform and Custodian
John needed a partner that could deliver institutional-grade technology, investment management solutions, and administrative support. We helped him evaluate several options and ultimately landed on a platform offering the ideal combination of an upfront transition deal to offset lost unvested deferred compensation, white-glove transition support, outsourcing services, and scalability. This allowed his team to focus on clients and growth while the platform managed middle- and back-office functions. - Legal and Compliance
Because John preferred not to oversee compliance internally, we identified a platform that assumed full legal and supervisory responsibility—providing peace of mind without limiting flexibility. - Technology and Infrastructure
A top priority was delivering a client experience that met or exceeded Merrill’s world-class platform. We worked with John to select a firm that offered an open-architecture technology suite integrating portfolio management, CRM, financial planning, proposal generation, and client portal tools, with the flexibility to evolve as new fintech and AI capabilities emerged. - Marketing and Branding
Differentiation mattered. We helped him find a firm that could assist with brand creation, logo, and website design that reflected his unique approach to wealth management. Additionally, they created a comprehensive marketing plan to ensure John’s clients knew why the move to independence was in their best interest and an ongoing social media, content creation, and thought leadership strategy to help drive organic growth. - Client Transition
Finally, the transition itself was executed with precision. We coached John on how to communicate the change, prepare clients for the new experience, and manage onboarding efficiently. Thanks to that preparation and the strength of his relationships, 95% of clients followed up within the first three months.
Growth and the Path to Monetization
Once launched, John’s new firm quickly gained momentum. Over the next three years, his revenue grew more than 10% annually, driven by organic referrals, an improved client experience, and the acquisition of a retiring $1mm-revenue advisor.
Within three years, John had built a thriving, self-sustaining business—and once again engaged Diamond Consultants, this time to explore a possible sale. We helped him source appropriate offers from private equity sponsors, family offices, large national RIAs, and even an insurance company. The outcome: Six bids valuing his firm at roughly 11× EBITDA, translating into a sale price nearly three times higher than the after-tax proceeds he would have received under Merrill’s CTP.
The Numbers Tell the Story
The result was clear: independence delivered more than double the after-tax value, while allowing John to control how and when to monetize.
More Than the Money
The financial outcome was compelling, but the qualitative gains mattered just as much. John built a firm that reflected his philosophy, attracted like-minded talent, and offered clients a more personal and flexible experience.
When it came time to sell, John wasn’t limited by firm policies or preset formulas. He didn’t choose the highest bidder; instead, he chose the buyer who aligned best with his values and offered continued autonomy and a career path for his team.
That’s the often-overlooked benefit of independence: optionality—the ability to control every strategic decision, from growth to succession, on your own terms.
The Takeaway
For advisors nearing retirement, the choice between a wirehouse sunset program and independence isn’t just about lifestyle—it’s about value.
Programs like CTP offer certainty and simplicity, but they also impose limits on how much of that value you actually capture. Independence requires more work up front, but with the right guidance and infrastructure, it can transform a single liquidity event into a long-term wealth-creation strategy.
As John’s experience shows, independence doesn’t just unlock freedom. It can redefine what your business – and your legacy – are ultimately worth.
[*] Note: Similar retire-in-place programs exist at other wirehouses, including UBS’s ALFA and Morgan Stanley’s FAP.
